City Comptroller John C. Liu today released his Comprehensive Annual Financial Report (CAFR) for Fiscal Year 2012. The report shows that, despite difficult economic circumstances, for the 32nd consecutive year New York City completed its fiscal year with a General Fund surplus, as determined by Generally Accepted Accounting Principles (GAAP). The report is due on Oct. 31st each year, as required by the City Charter.
“We are pleased to present the city’s financial report on time, notwithstanding Hurricane Sandy,” said Comptroller Liu. “The City’s budget is balanced for fiscal 2012. We expect some economic and revenue growth over the next few years, but must be vigilant aboutlooming deficits, the cost impact of the hurricane, and the potentialfiscal cliff requiring Washington’s action.”
Among other important economic findings, the report contains updateson New York City’s finances, including:
City pension funds, which paid benefits totaling $11.5 billion duringfiscal year 2012 funded from the sale of investments. Employer andemployee contributions to the City pension funds were $9.1billion and$1.0 billion, respectively.
As of June 30, 2012, the City pension funds had aggregate investmentassets, excluding cash from the settlement of pending purchases andsales, of $122.1 billion representing an increase of $2.1 billion from the June 30, 2011 value of $119.9 billion. During the fiscal year, the market value of the assets ranged from a low of $108.1 billion to a high of $123.8 billion.
Notable securities litigation developments in fiscal year 2012 included the appointment on December 28, 2011 of the City pension funds as lead plaintiffs in the securities class action pending against Community Health Systems, Inc.; and a derivative lawsuit against officers and directors of Wal-Mart Stores, Inc. in connection with their alleged failure to properly investigate and remedy a reported bribery scheme in Mexico. In a securities class-action lawsuit against Wachovia Corp. in which the City pension funds were lead plaintiff, the United States District Court for the Southern District of New York granted final approval on June 12, 2012 to a $75 million cash settlement of the action, which related to that company’s alleged failure to disclose problems with its residential mortgage loans.
In Fiscal Year 2012, the Comptroller’s Bureau of Audit issued 92 audits and special reports. Many of these audits focused on the effectiveness and service quality of City programs. Others focused on financial issues, identifying approximately $304.3 million in actual and potential revenue and savings. Reviews of claims filed against the City identified another $25.6 million in cost avoidance.
In fiscal year 2012, the City paid $588.6 million in settlements and judgments (tort and non-tort), representing a 3% increase from the prior year. These cases ranged from trip and fall to medical malpractice, police action, property damage, and contract claims.
In fiscal year 2012, the City and its Blended Component Units issued $10.10 billion of long-term bonds to finance the City’s capital needs and to refinance certain outstanding bonds for interest savings. The New York City Municipal Water Finance Authority (Water Authority) issued $3.51 billion of long-term bonds to finance the City’s capital plan and to refinance certain of its outstanding bonds for interest savings. Conditions were ideal for refinancing outstanding bond issues. The City issued a total of $4.28 billion of refunding bonds
through the General Obligation, New York City Transitional Finance Authority (TFA), and Water Authority credits. This accounted for 31% of the total issuance for these credits and generated a total of $523.88 million in present value savings.
“We are pleased to present the city’s financial report on time, notwithstanding Hurricane Sandy,” said Comptroller Liu. “The City’s budget is balanced for fiscal 2012. We expect some economic and revenue growth over the next few years, but must be vigilant aboutlooming deficits, the cost impact of the hurricane, and the potentialfiscal cliff requiring Washington’s action.”
Among other important economic findings, the report contains updateson New York City’s finances, including:
City pension funds, which paid benefits totaling $11.5 billion duringfiscal year 2012 funded from the sale of investments. Employer andemployee contributions to the City pension funds were $9.1billion and$1.0 billion, respectively.
As of June 30, 2012, the City pension funds had aggregate investmentassets, excluding cash from the settlement of pending purchases andsales, of $122.1 billion representing an increase of $2.1 billion from the June 30, 2011 value of $119.9 billion. During the fiscal year, the market value of the assets ranged from a low of $108.1 billion to a high of $123.8 billion.
Notable securities litigation developments in fiscal year 2012 included the appointment on December 28, 2011 of the City pension funds as lead plaintiffs in the securities class action pending against Community Health Systems, Inc.; and a derivative lawsuit against officers and directors of Wal-Mart Stores, Inc. in connection with their alleged failure to properly investigate and remedy a reported bribery scheme in Mexico. In a securities class-action lawsuit against Wachovia Corp. in which the City pension funds were lead plaintiff, the United States District Court for the Southern District of New York granted final approval on June 12, 2012 to a $75 million cash settlement of the action, which related to that company’s alleged failure to disclose problems with its residential mortgage loans.
In Fiscal Year 2012, the Comptroller’s Bureau of Audit issued 92 audits and special reports. Many of these audits focused on the effectiveness and service quality of City programs. Others focused on financial issues, identifying approximately $304.3 million in actual and potential revenue and savings. Reviews of claims filed against the City identified another $25.6 million in cost avoidance.
In fiscal year 2012, the City paid $588.6 million in settlements and judgments (tort and non-tort), representing a 3% increase from the prior year. These cases ranged from trip and fall to medical malpractice, police action, property damage, and contract claims.
In fiscal year 2012, the City and its Blended Component Units issued $10.10 billion of long-term bonds to finance the City’s capital needs and to refinance certain outstanding bonds for interest savings. The New York City Municipal Water Finance Authority (Water Authority) issued $3.51 billion of long-term bonds to finance the City’s capital plan and to refinance certain of its outstanding bonds for interest savings. Conditions were ideal for refinancing outstanding bond issues. The City issued a total of $4.28 billion of refunding bonds
through the General Obligation, New York City Transitional Finance Authority (TFA), and Water Authority credits. This accounted for 31% of the total issuance for these credits and generated a total of $523.88 million in present value savings.
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